SPAC Deals Power EQRx and Greenlight Biosciences

Medford-based synthetic biology company GreenLight Biosciences has agreed to merge with Environmental Impact Acquisition Corp., a publicly traded special purpose acquisition company or SPAC, in a transaction that will result in GreenLight becoming a publicly-listed company. After the close of the transaction, expected in Q4 of 2021, the combined company will be listed on Nasdaq with an estimated enterprise value of $1.2 billion.

GreenLight develops RNA-based solutions with applications in human health and food production. The company’s cell-free RNA manufacturing platform, which is protected by numerous patents, allows for cost-effective and scalable production of RNA. For human health, GreenLight is developing an mRNA manufacturing platform aimed at providing mRNA-based therapeutics at scale and an appropriate price for global needs. The company’s lead vaccine programs include vaccine candidates for Covid-19 and influenza. Earlier-stage programs are being developed to address other unmet medical needs, such as sickle cell disease.

“Going public through this partnership will accelerate development and commercialization by enabling us to attract the talent, purchase the tools, scale our manufacturing infrastructure, advance regulatory approvals, and develop further the science necessary to address some of humanity’s most pressing challenges,” said Andrey Zarur, co-founder and CEO of GreenLight. (Source: GreenLight Biosciences Website, 10 August, 2021)

In another SPAC deal, Cambridge startup EQRx has agreed to merge with CM Life Sciences III. The merger is expected to provide up to $1.8 billion in cash proceeds to EQRx. “EQRx is new pharma, leading the way in how we develop and price innovative medicines,” said Alexis Borisy, chairman and CEO of EQRx. “We are excited to partner with a world-class group of investors who recognize the opportunity for change in our industry.” Upon closing of the business combination, CM Life Sciences III will be renamed “EQRx, Inc.” and its common stock and warrants are expected to remain listed on the Nasdaq Global Market.

EQRx is building a pipeline of drug candidates to address diseases like cancer and inflammatory conditions that are the top categories of drug spend today and in the future. By leveraging proven druggable targets and a focus on efficiency, together with building deep strategic partnerships with health systems and payers, EQRx anticipates a higher probability of regulatory success, a lower risk-adjusted cost of drug development and a more streamlined access model.

EQRx’s growing pipeline of 10+ programs includes two pre-registrational oncology assets that have shown promising Phase 3 data, and multiple other clinical-stage programs. In addition, EQRx is further expanding its portfolio through drug engineering collaborations with leading drug discovery companies including Exscientia and AbCellera Biologics. (Source: EQRx Website, 06 August, 2021)